Partners cut encouraging grades at Boulondjonga

Trenching and reverse-circulation (RC) drilling on the Boulondjonga SW prospect 10 km northwest of the Samira Hill mine in Niger has returned some encouraging results for partners Etruscan Resources (EET-T) and Semafo (SMF-T).

Highlights from 5 trenches totalling 532 metres include a 7-metree section grading 2.9 grams gold per tonne in trench no. 2 and a 48-metre section in trench no. 3 running 1.8 grams gold.

Selected results from 61 RC holes totalling 6,198 meters are as follows:

• Hole 165 20 metres (from 17 metres) running 3 grams gold, including 10 metres (form 21 metres) at 4.3 grams;
• Hole 167 27 metres (beginning 3 metres below surface) averaging 4.1 grams gold, including 6 metres (from 3 metres) of 12.6 grams;
• Hole 169 25 metres (from 50 metres) of 4 gram gold, including 13 metres (from 59 metres) of 5.4 grams; and
• Hole 186 20 metres (from 73 metres) of 2.6 grams gold, including 6 metres (from 80 metres) of 5.7 grams.

The intervals represent core lengths only. Assay results for 14 holes are pending.

Boulondjonga SW is hosted by the “Samira Horizon” and represents a portion of the 15-km-long Boulondjonga mineralized structure, extending to the northeast up to the village of Boulondjonga. The partners describe the village as one of Niger’s most important artisanal working sites.

At the end of 2004, the Boulondjonga prospect was home to indicated mineral resources totalling 993,000 tonnes running 1.7 grams gold, for 55,000 contained ounces. The estimate is based on a cutoff grade of 0.6 gram gold and gold price of US$380 per oz.

The latest batch of holes was designed to close up the drill spacing to allow for an updated National Instrument 43-101-compliant resource and reserves estimates.

Gold mineralization at Boulondjonga is hosted by a schistosed and highly deformed mafic volcano-sedimentary unit. The gold is associated with a silicified, cherty and fragmental horizon, typical of the higher-grade ores at the Samira and Libiri deposits.

The Boulondjonga SW prospect is one of several advanced-stage gold targets situated along the 55-km “Samira Horizon.,” and the partners located Samira Hill’s processing facility in a central location to allow for the eventual trucking of ore from any nearby satellite gold deposits. AGMD holds 1,600 sq. km in this belt under the Tiawa, Saoura and Datambi permits.

The Samira Hill gold mine is held by Nigerien company Socit des Mines du Liptako (SML). SML is in turn owned 80% by African GeoMin Mining Development, with the government of Niger owning the remaining 20%. Etruscan and Semafo each own a 50% stake in African GeoMin. Semafo operates the mine, and carried out the Boulondjonga exploration program on behalf of African GeoMin.